Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Thomas Hughes

Asian Equities Fall In Wake Of FOMC Meeting

Asian markets fell in Thursday trading in the wake of the Wednesday’s FOMC meeting. The FOMC policy statement, outlook, and press conference produced a mixed-bag relative to the market’s expectation and left traders wary. The FOMC raised rates by a quarter point, as expected, and reduced its outlook for future rates, also as expected. What as not expected is the outlook for future rate hikes is still hawkish at 2 hikes in 2019, double what the market was looking for.

Adding to the unease were statements within the policy report and press conference that have cemented the specter of an economic recession in the minds of the market. The fed acknowledged risks to the global economy, cross-currents with the US economy, and reduced its growth forecast by 0.2%. US markets fell more than -2.0% on the news.

Asian indices were broadly lower in Thursday trading although losses were not uniform. The Japanese Nikkei led with a loss near -3.0% while others posted losses closer, or even less than, -1.0%.


Europe Under Pressure, Equities Hit Two-Year Low

European markets were also under pressure in Thursday trading as mounting global woe has investors flooding to cash. The indices were mixed at midday after posting near -2.0% decline in early trading. By midday, the declines had moderated but losses were being posted across the board. The DAX led with a decline of -1.0% with others in the region showing much smaller losses.

Shares of Airbus were among the hardest hit on Thursday after news the US DOJ was investigating the company hit the wires. The DOJ alleges inappropriate practices and sent shares down more than 9.0%. Shares of Indior were also down hard in early trading, shedding more than -6.0%, on word it would make a cheaper version of its opioid-addiction product. The retail sector also moved sharply lower, -3.0%, and is trading at freshly set lows.

No Santa Rally For Wall St. This Year

Market history tells us to expect a nice rally in equities going into the Christmas holiday season. Often referred to as the Santa Rally in honor of the jolly old elf, that trend is not present this year. US indices have been in a downtrend for weeks and hit new one and two years in Wednesday trading. Early Thursday futures action had the indices holding steady near Wednesday’s closing prices but there is little hope Santa Claus is coming to town this year.

In the news; The US Senate has passed a stop-gap measure to avoid a government shutdown, again. The measure puts off any real decision making until February 2019 at which time we can assume another shut-down will loom. The major sticking point in the budgeting process is Trump’s border wall and immigration reforms, two items the newly-elected Democratic House of Representatives are also passionate about.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.